Bethesda, MD - March 3, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $10 million in Visador Holdings Corporation. Visador is a holding company for Coffman Stairs, a leading US manufacturer of stair components, and Crown Column and Millwork, a major manufacturer of synthetic and wood columns used in residential construction. American Capital's investment takes the form of senior subordinated debt with warrants. Carousel Capital was the lead equity investor, with additional equity coming from Visador management. Harris Bank provided the senior credit facility.
Carousel's investor base includes CEO's from a broad range of building products and service companies, including homebuilders, real estate developers, "big box" retailers, installers, building product manufacturers, building product sales representatives, and public REITs. Carousel uses the talents of many of these investors to enhance the value of their portfolio companies.
"This is American Capital's 13th transaction involving a new relationship with an equity sponsor in the last twelve months, totalling approximately $240 million in American Capital investment," said COO Ira Wagner. "We are pleased to be working with Carousel Capital, a strong private equity firm who will be both anchoring the balance sheet and marshalling significant industry expertise for this portfolio company. Our investment in Visador is an investment in a market leading company that has achieved success in two highly fragmented industries."
American Capital has invested more than $500 million in the past twelve months.
For more information about American Capital's portfolio click here.
"With this investment, American Capital is supporting a strong, well-established company with substantial market share," said American Capital Principal Jeff MacDowell. "The company's two operating subsidiaries have established respected positions and excellent brand recognition within their respective industry segments through the development of high quality products, short lead times, and exceptional customer service. In addition to these factors, Coffman's large distribution network, in particular, should allow it to gain market share from smaller competitors during a market slowdown, as customers become even more focused on timely delivery and product quality. "
Visador Holdings Corporation, headquartered in Marion, VA, was founded in 1951 and later merged with Coffman Stairs, a manufacturer of wooden stair parts since 1874. The Company has over 475 employees, two manufacturing facilities in Virginia and Alabama, and a warehouse facility in Texas. Coffman offers a vast array of product species and design, including a Hampton style stairway (pictured at left).
"We are thrilled with the opportunity to partner with American Capital and Visador's strong management team," said Jason Schmidly, Partner of Carousel Capital. "With the flexible financing provided by American Capital, Visador is well positioned to continue its market leadership and capitalize on its many growth opportunities. Visador represents exactly the type of company on which Carousel is focused - a Southeastern-based company that leads its market niche."
Click here for more information about Visador and its operating subsidiaries.
American Capital is a publicly traded buyout and mezzanine fund with capital resources exceeding $1.5 billion. American Capital is an equity partner in management and employee buyouts; invests in private equity sponsored buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.
Companies interested in learning more about American Capital's flexible financing and ability to provide senior debt, subordinated debt and equity should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.
American Capital paid $2.55 in regular dividends in 2002, a 15% increase over 2001, and including the bonus dividend declared in 2002, paid or declared a total of $2.57 in dividends in 2002. American Capital has paid or declared a total of $11.00 per share in dividends since its August 1997 IPO at $15 per share.
Carousel Capital is a private investment firm that invests in Southeastern-based companies. With more than $300 million of capital under management, Carousel is one of the largest private equity firms in the Southeastern U.S. Carousel's investors include an elite group of more than 65 current and former CEOs with expertise in a diverse group of industries. Carousel's investor base also includes institutional investors such as financial institutions, insurance companies, and pension funds.
This press release contains forward-looking statements. The statements regarding expected results of American Capital Strategies are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
